Canada: Tax measures in 2023 fall economic update

No individual or corporate tax rate changes

No individual or corporate tax rate changes

Canada’s Finance Minister on 21 November 2023 delivered the government’s 2023 fall economic update.

Although the update does not include any individual (personal) or corporate tax rate changes, it includes the following tax-related measures:

  • Relieving changes for the underused housing tax (UHT)
  • Enhancements to the Canadian journalism labor tax credit
  • Additional design details on previously announced clean economy credits
  • New rules for goods and services tax (GST)/harmonized sales tax (HST) joint venture elections

Finance also released draft legislation for consultation for the proposed UHT changes and the new GST/HST joint venture election rules.

In addition, Finance reaffirmed its commitment to move ahead with its longstanding plan for legislation to enact a digital services tax. Read TaxNewsFlash

Finally, Finance announced that it intends to amend the proposed rules to restrict the dividend received deduction (DRD) to allow financial institutions that receive dividends on “taxable preferred shares” (as defined in the Income Tax Act) to continue to be eligible for the DRD. Finance previously stated in the 2023 federal budget that it would deny the DRD for all dividends received by financial institutions on shares that are mark-to-market property effective 1 January 2024.

Read a November 2023 report [PDF 234 KB] prepared by the KPMG member firm in Canada



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